By Saman Gunadasa
2 November 2011
The Sri Lankan government presented its 2012 budgetary estimates to parliament on October 18, unveiling a nearly 7 percent increase in military expenditure. The boost to already high levels of defence spending indicates that the government, facing a deep financial crisis, is preparing for violent confrontations with working people.
Such is the extent of the fiscal crisis that total budget expenditure for 2012 is estimated at 2.22 trillion rupees ($US20.1 billion), which is double the expected income of 1.1 trillion rupees. President Mahinda Rajapakse, who is also finance minister, will announce proposals on November 21 to meet the trillion-rupee deficit. The government is already imposing new taxes and resorting to foreign and local borrowing, imposing even greater burdens on the backs of workers and the poor. Full Story>>>
